Book Value

Also found in: Dictionary, Thesaurus, Financial, Acronyms, Wikipedia.
Related to Book Value: market value, Book value per share

Book Value

The current value of an asset. The book value of an asset at any time is its cost minus its accumulated depreciation. (Depreciation reflects the decrease in the useful life of an asset due to use of the asset.) Companies use book value to determine the point at which they have recovered the cost of an asset.

The net asset value of a company's Securities. This is calculated by subtracting from the company's total assets the following items: intangible assets (such as goodwill), current liabilities, and long-term liabilities and Equity issues. This figure, divided by the total number of bonds or of shares of stock, is the book value per bond or per share of stock.

The calculation of book value is important in determining the value of a company that is being liquidated. For example, if a corporation has 100,000 shares of stock issued and outstanding and its assets total $5 million and its intangible assets and all liabilities total $1.6 million, its net asset value is $3.4 million and its book value per share is $34.

book value

n. a determination of the value of a corporation's stock by adding up the stated value of corporate assets as shown on the books (records) of a corporation and deducting all the liabilities (debts) of the corporation. This may not be the true value of the corporation or its shares since the assets may be under- or over-valued.

References in periodicals archive ?
This week a 2004 Camry XLE V6 automatic is typically selling for $24,050 based on the Kelley Blue Book New Car Blue Book Value, almost $2,000 below MSRP.
Although the book value purchase option in the letter ruling was granted by the terms of the decedent's will, it is not unusual to fund marital trusts with closely held stock subject to a buy/sell agreement.
If each asset has an expected life of five years, with no residual value, and straight-line depreciation is used, the book value at the end of year one would be $120,000 ($150,000 - $30,000).
Delphi's growth in book value per share evidences our commitment to enhance shareholder value," Rosenkranz told analysts at New York's University Club.
In the event the Company elects to put aircraft to DHL, provisions of the ACMI agreement stipulate that ABX Air will receive cash equal to the lower of fair market value or book value of the released aircraft.
As disclosed in National Fuel's second quarter earnings release, at March 31, 2006, the book value of Seneca's Canadian reserves (of which more than 80% are natural gas) nearly equaled the ceiling.
Consumers want to know they are getting a good deal on a new car and with Zag's partner dealers using our New Car Blue Book value as a no-haggle price, it's practically ensured," said Leo Drew, executive vice president of customer sales and strategy, Kelley Blue Book.
Operating as a RIC means that book value growth will be much slower over time, and that share appreciation should be similarly limited.
The multiple did not decline to 5 or less perhaps because of the underlying book values and the relationship of the price to the net book value as discussed in the following section, return on net assets.
Boardwalk is proposing the amendment to the definition of Gross Book Value in order to have the increased flexibility to implement its strategic plan, which includes, but is not limited to, the purchase of accretive multi-family assets in the current competitive acquisition environment and, at the same time, maintain or more aggressively execute it's accretive Unit buy-back program.
Inventory valuations typically result in inventory write-ups from book value.
This style often involves paying a high price relative to current earnings or book value under the assumption projected earnings growth will be sufficient to justify that price.